RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of January 19, 2026 No. 14

About questions in the field of budget crediting

For the purpose of regulation of the procedure of budget crediting, according to the Law of the Kyrgyz Republic "About protection of bank deposits (deposits)", Article 31 of the Budget code of the Kyrgyz Republic, Articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve Regulations on work with budget credits according to appendix.

2. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Procedure for alienation of the objects which passed into state-owned property on the bases provided by the civil legislation of the Kyrgyz Republic, the legislation of the Kyrgyz Republic on violations, the penal and criminal procedure legislation of the Kyrgyz Republic" of March 20, 2024 No. 126 the following change:

according to the procedure of alienation of the objects which passed into state-owned property on the bases provided by the civil legislation of the Kyrgyz Republic, the legislation of the Kyrgyz Republic on violations, the penal and criminal procedure legislation of the Kyrgyz Republic, approved by the above-stated resolution:

- to state the subitem 4 of Item 2 in the following edition:

"4) as a result of the address to state-owned property of the property collected on account of debt repayment on budget credits;".

3. Bring in the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About questions of funds of development of regions" of September 11, 2024 No. 554 the following change:

- declare Item 7 invalid.

4. Declare invalid the resolution of the Cabinet of Ministers of the Kyrgyz Republic "About approval of the Regulations on work with the budget credits granted from the republican budget" of July 29, 2022 to No. 406.

5. This resolution becomes effective after ten days from the date of official publication.

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of January 19, 2026 No. 14

Regulations on work with budget credits

Chapter 1. General provisions

1. This Provision regulates operating procedure with the budget credits granted from the republican budget and other sources and also carrying out leasing transactions.

2. The purpose of budget crediting is ensuring sustained economic growth by support and development of industries of economy, improvement of infrastructure, utility life support system of the population and ensuring national security of the country.

3. In this Provision the following main terms and concepts are used:

1) the agent - person authorized by the Cabinet of Ministers of the Kyrgyz Republic on realization of state policy in the field of budget crediting including the financing of economic projects in the form of budget crediting at the expense of means of funds of development of regions acting on behalf of authorized state body;

2) administration of budget credit - process of registration, accounting, monitoring and ensuring return of budget credits;

3) bank maintenance of budget credit - ensuring monitoring with authorized bank of the calculations of the borrower perfromed from means of budget credit, control of target use and also bringing results of bank maintenance to data of the agent based on the agreement on bank maintenance;

4) bad debt - the amount of outstanding requirements of the creditor which is not represented possible to collection;

5) budget crediting - the activities for provision, use, administration and repayment of budget credit regulated by the budget legislation of the Kyrgyz Republic;

6) debt - the amount of unpaid balance on the issued budget credit for certain date, including the delayed, come and coming payments on the main amount of debt, the added percent and financial sanctions (penalties);

7) the borrower - the legal entities and physical persons which obtained budget credits according to decisions of the Cabinet of Ministers of the Kyrgyz Republic and assumed obligations according to conditions of the signed credit agreement;

8) the applicant - person applying for receipt of budget credit and/or leasing;

9) other sources - the means which are not means of the republican budget, determined by the decision of the Cabinet of Ministers of the Kyrgyz Republic for the purposes of budget crediting and/or leasing;

10) creditor - The Cabinet of Ministers of the Kyrgyz Republic on behalf of authorized state body;

11) the credit agent - the financial credit institution authorized by the Cabinet of Ministers of the Kyrgyz Republic on conducting works on administration of budget credits;

12) the credit agreement - the legal document determining the rights and obligations of the creditor and the borrower, concluded with the purpose of provision of budget credit and containing conditions of its use and return;

13) credit portfolio - set of the issued, extinguished and not extinguished credits / лизингов for certain date;

14) leasing - set of the economic and legal relations arising in connection with implementation of the agreement of leasing including with acquisition of subject of leasing;

15) the coming payments - the amount of fees on the credit for certain date on which there did not come the repayment periods established in the credit agreement;

16) the come payments - the amount of fees on the credit for certain date on which came and did not expire the repayment periods established in the credit agreement;

17) homeland security - the guaranteed condition of security of the vital interests of the personality, society and state from internal and external threats;

18) non-execution or improper execution of obligations - complete refusal of accomplishment of obligations or accomplishment of obligations only in part or not in that type and quality according to terms of the contract or requirements of the civil legislation of the Kyrgyz Republic;

19) the main amount of debt - the amount of the obtained and outstanding budget credit without the charged interest for using, financial sanctions (penalty) and other commission payments provided by the credit agreement;

20) industry state body - state body of the executive authority, authorized to perform state policy in the corresponding industry of economy;

21) food security - state of the economy of the Kyrgyz Republic in case of which food independence and steady access of the population to main products of food at reasonable prices are provided;

22) overdue payments - the amount of fees on the credit for certain date on which the repayment periods established in the credit agreement expired;

23) interest rate or interest for using - the payment specified in percentage expression to the main credit amount;

24) write-off - one-time release of the borrower from obligation fulfillment according to the credit agreement or the termination of the rights of requirements of the creditor for the borrower;

25) the term of budget credit - the period of time during which the borrower receives utilizes and settles budget credit according to the schedule;

26) the account of budget credit - the separate settlement account of the borrower intended only for transfer, accounting and use of means of budget credit strictly according to its purpose;

27) the account of mitigation of public debt (further - the account of mitigation) - specially open account in clearing bank for accumulation of means within financial asset management for the purpose of use on actions according to the provision regulating operating procedure with the account of mitigation of public debt of the Kyrgyz Republic;

28) commodity material resources - raw materials or products of work in material form, including the equipment, the agricultural and industrial machinery, spare parts, fuels and lubricants, seeds and products of crops, mineral fertilizers, remedies of plants, medical, veterinary and medicines;

29) restructuring - change of conditions of use and repayment of budget credit;

30) authorized state body - the central executive body authorized by the Cabinet of Ministers of the Kyrgyz Republic on implementation of functions on development and realization of state policy in the field of management of public finances;

31) management of budget credits - the activities directed to effective management of public finances in the field of budget crediting;

32) physical person - agricultural producer and/or the individual entrepreneur whose core activity is production (cultivation) of agricultural products and business activity;

33) financial sanctions (penalty) - the sum of money or other value established in the agreement defined by the legislation or the agreement which the debtor shall pay or give to the creditor in case of non-execution or improper execution of obligations;

34) economic safety - condition of security of national economy from external and internal threats, long-term condition of stability of economic system, and also capability to economic development which provides possibility of satisfaction and expansion of needs of subjects of economic activity, capability to support worthy level of living;

35) energy security - condition of security of economy and the population with energy resources of required amounts and reliability on economically reasonable conditions in case of which long or system interruptions in electric utility service and heat supply are prevented.

Chapter 2. Subjects of budget crediting

4. Subjects of budget crediting are the creditor, the authorized state body, industry state body, the agent, the credit agent and the borrower.

5. The rights and obligations of the creditor and the borrower according to the decision of the Cabinet of Ministers of the Kyrgyz Republic (further - the Cabinet of Ministers) are determined in the credit agreement signed according to requirements of the civil legislation of the Kyrgyz Republic.

6. The authorized state body provides forming of the draft of the republican budget and the organization of its execution regarding budget crediting according to the budget legislation of the Kyrgyz Republic and the decision of the Cabinet of Ministers.

7. The agent on behalf of authorized state body performs administration of budget crediting based on this provision and the agency agreement signed between authorized state body and the agent.

8. The expenses connected with administration of the budget credits granted at the expense of the republican budget and other sources become covered due to assignments in the amount of 10 percent from the money returned on account of repayment of percent on budget credits from which 30 percent go to authorized state body into the corresponding account the remained 70 percent goes authorized state body to the settlement account of the agent. The transferred funds are considered by the agent as the income.

9. Credit agents, in case of investment with their powers according to the decision of the Cabinet of Ministers, carry out work on administration of budget credits.

Chapter 3. Basic provisions in budget crediting

10. The decision on provision of budget credits is made by the Cabinet of Ministers according to regulations of the budget legislation of the Kyrgyz Republic and this provision.

11. Budget credits are granted in terms of money, and also in the form of commodity material resources according to conditions of budget crediting.

12. Budget credits are granted in case of observance of the following conditions:

1) the purpose - provides use of budget credit by the borrower on the purposes determined by the decision of the Cabinet of Ministers and the credit agreement;

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